RetireMentors

Financial Planning

Balancing the fiscal and the physical

Dennis Miller is the author of “Retirement Reboot," a book chronicling his
own journey to save his retirement in a low yield, turbulent investing
environment. He works with some of the country’s top investment managers,
authors and analysts to tackle the financial challenges faced by today’s
retirees. Prior to retiring in 2008 Dennis ran a successful consulting business
and authored several books on sales management. He was also a regular
contributor to the American Management Association and an active international
lecturer for 40 years. Dennis is featured regularly on several retirement blogs
and is a frequent guest on radio shows throughout the country. You can track his
exploits at Miller on the Money and on Twitter @DMonthemoney,
or contact him at
milleronthemoney@gmail.com.

Over 72 years, some of my New Year's Resolutions have had a major impact on my life, like when I quit smoking. Yet every year when I resolve to lose weight, a few pounds come off, only to return by year's end.

My wife and I had parents who spent their final years in assisted-living facilities. When we visited, my wife would point out that none of the men were fat — and note my expanding waistline.

My doctor got right to the point: "Dennis, either lose some weight or I am putting you on pills you don't want."

From Jan. 1, 2005 to Jan. 1, 2009, my weight didn't vary by more than four pounds. In 2009 I was even seven pounds lighter than I had been four years earlier. By the first day of 2012, I was 30 lbs. heavier.

During the early years, I was retired, enjoying life, and relatively stress free. Then the bottom fell out in late 2008 when the first TARP bill passed. The banks called in our juicy 6% and 7% CDs. Overnight I changed from a passive investor into a very active one trying to protect our nest egg. I was scared to death.

My mistake was allowing my worry over our financial health to potentially damage my physical health. I no longer had as much free time; I was reading a good three hours a day, trying to make sense of what was going on in the world.

Financially, we were fine. It was the stress of the new game that I'd let get to me. If Hostess had called me, I probably could have kept it in business.

Put down the chocolate and check the stock price of its parent company

We all have to decide what our priorities are. For most folks, living a long, happy, and healthy life is high on the list. But it isn't necessary to sacrifice your physical health for your financial health.

I want to share three simple tips that I've learned over the last few years. I hope they save you thirty Snickers-fueled pounds and a few trips to the doctor.

The investing paradigm has changed, and the old ways are not coming back. Remember 6% CDs and AAA bonds fondly, because seniors are not likely to see them again. Accept that the game has changed, and learn the new rules.

Being an active investor is a pain, but it's your job now if you want your nest egg to last. It's time to get to work.

Allocate a couple of hours a day to self-education. We have a friend who was toying with the idea of going back to work 40 hours a week. I suggested that he work 30 hours a week and spend the other 10 doing the hard part — staying in tune with today's investment world. If he could make $2,000 on a smart investment, it would be the same as working 200 hours at $10/hour. What good is it to work at a minimum-wage job if your portfolio is depreciating faster than you can replenish it?

During my working years, I spent 40-plus weeks a year flying around the world, but I was terrified of flying. A mentor told me that fear is sometimes just a lack of knowledge, so I took flying lessons and eventually became an instrument-rated pilot. The fear disappeared as I learned exactly what was going on.

I've had a parallel experience since 2008. My stress dissipates some with each new lesson learned.

I can now say this from personal experience. I am down 15 lb. from when my doctor and I had our last little talk. Once we put our financial systems in place, I started sleeping (and eating) much better, because I wasn't nearly as worried.

My advice for 2013 is to make the tough New Year's resolution to get or keep your physical and fiscal health in order — and stick to it! The sooner you get on with the job, the sooner you'll be back to enjoying your retirement.

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